Investments, Latvia, Legislation, Markets and Companies, Real Estate

Riga Plaza is being sold to a global investment fund the name of which has not been disclosed as yet.

Karlis Cerbulis, the head of U.S. investment group New Century Holding (NCH), which is a co-owner of Riga Plaza, told LETA that all 100% in the shopping mall have been sold under the deal, as Plaza Centers NV and NCH have each sold their 50% stake.

Cerbulis projected that the deal might be closed in July. “I cannot reveal the buyer for now, all I can say is that this is a respectable Western investment fund, which has chosen Latvia as place for its investments,” Cerbulis said.

He added that he is not authorized to comment on the cash flow generated by Riga Plaza, but that when the mall opened in 2009, only 60% of the floor space were let out to tenants, who were paying only half of the rent. By now, about 98% of the shopping mall’s floor space is let out.

Plaza Center NV says in its statement that the shopping mall is being sold as the company's strategy is to overhaul its portfolio, focusing on more profitable properties and reducing the company's debts.

The closing of the deal is planned in the next few months. After the deal is closed, Plaza Centers NV will be able to repay all its EUR 55 million loan to banks.

As reported, Riga Plaza opened in 2009. The shopping mall houses stores of fashion, accessory and beauty care brands like Peek&Cloppenburg, H&M, Zara, Reserved, Mango, Mohito, Stradivarius, Monton, Douglas and others.

The shopping mall's total floor space is 90,000 square meters, including 49,000 square meters of commercial space.